Summit Public Schools2017-18 Budget

Mr. June Chang, Superintendent of SchoolsMr. Louis J. Pepe, RSBA Assistant Superintendent

Targeting the FutureIn the 21st Century

Budget formed with the students at its Core

Finding success in the 21st century Opportunities beyond post-

secondary Preparing our students for a digital

world

Total Budget Increase

+ 0.945%1

This Budget Preserves our Ability to DeliverHigh Quality Programs and Instruction

Maintain Programs and Positions that

are in line with the District

Focus Areas

Add Additional Support and

expand opportunities in

Technology, Curriculum and

Guidance

Meet the demands of

Salary & Benefits along with increased

operational costs

Sustaining Superior Education and

Operational Excellence

Cultivating a Love of Learning – Inspiring

Staff

Achievement for ALL – Empowering

potential

Budgeting driven by Focus Areas3

Proposed 2017-18 Budget What’s driving the overall increase of $646K or the “SPEND”

Tentative Budget subject to change based on State Aid

$186,500

$149,733

$147,193

$131,941

$30,455 New Positions

Curriculum

Technology

Net of Changes

Health Benefits

Increase in Expenditures

$646K

4

How have we planned and implemented to this end?

This Budget Maintains New Positions added in 2016-17

• VHS Coordinator/Instruction Facilitator FA: 1,2,3/Tech Coach FA: 1,2

• Literacy Coach FA: 1,2• Two Directors to Education FA: 1,2,3• Student Assistance Counselor - LCJ SMS • Special Education Staff

FA = Focus Areas

Restructured to Maximize

AndExpand Support

Savings on Health Benefits Final Renewal [FY 2017] used to fill academic needs

$200k of Savings

Managing Personnel Requests against Changing Needs

2nd Grade teacher at Franklin (growing population) - $89,000

.5 Science at the HS needed due to AP psychology popularity - $32,500

Two .5 ES Learning Workshop (BSI) teachers - $65,000

This Budget Adds $186k of New Positions for 2017-18

Curriculum Investment

Curriculum Related Expenses include:

Student Textbooks/Teacher resources including Math & Science = $87,170 Supplies & Materials = $ 31,887 Curriculum writing and Problem Based Learning (PBL) designs = $25,230 Professional Development/Staff = $5,445

$149,733

$546,960 Equipment•Chromebook 1:1 - $213,580•Routine Network Electronics Replacements- $65,100

Switches, Wireless Access, Fiber•Routine Server System Replacements - $48,000•Routine Class/Lab/Office Computer Replacements - $195,480•Routine Equipment Replacements - $24,800

Projectors, Printers, Phones

$306,025 Software•Student Educational Subscriptions - $91,216•District Operations - $129,228

Powerschool, Registration, Notification System, Etc.•Technical Systems - $85,581

$ 187,950 Maintenance, Contracts and Professional ServicesCritical System Contracts, Server System Integration, Repair Budget

$ 99,423 SuppliesClassroom/Lab/Studio/Office Items, Printing

546,960

306,025

187,950

99,423

Equipment Software Maintenance Supplies

Total 2017-2018 Technology Program

With the implementation of the 1:1, we have already begun reducing the number of desktops in classrooms and the number of laptop carts in the high school and middle school.

In future years, we expect to further reduce the number of classroom desktop computers in all schools and the number of labs at the high school and middle school.

Where are we going from here?

954,291 993,136 1,140,329 1,050,000 975,000 950,000

FY12-FY16 Avg. 2016-2017 2017-2018 2018-2019 Est. 2019-2020 Est. 2020-2021 Est.

Maintaining Athletics and Fine Performing Arts Programs

2013-14 2014-15 2015-16 2016-17 2017-18

1,222,683 1,305,657 1,292,452 1,321,259 1,320,852

Total Athletics Program Budget Past 5 years

Total Athletic Budget $1,320,852

Boys (12 Programs) ……………………….Girls (12 Programs) ………………………. Co-Ed (6 Programs) ……………………… Misc. Rentals/Fees, Video & Printing …...

$514,512$461,698$143,527$201,115

2013-14 2014-15 2015-16 2016-17 2017-18

351,993 365,758 428,701 440,446 485,218

Total Fine Performing and Practical Arts Program Budget Past 5 years

Total FPP Arts Budget $485,218

Consumer Science (Home Ec)……………Industrial Supplies (Middle & High)……... Art & Music (K-12) ………………………… Equipment/Instruments …………………... Clubs & Related Activites (401 accts) ..

$12,500$24,000

$104,274$30,826

$313,618

$129.67 per year

$10.81per month

2017

Tax Comparison Year over Year

“Doing more with less” … Effectively managing and maintaining quality programs.

2016-2017 2017-2018 % Change $ Change62,968,889 63,563,682 0.945% $ 594,793

2016 2017 % Change $ Change 62,366,792 63,266,286 1.442% $ 899,494

11

Revenues as a whole and % breakdown

Tax Levy

State Aid

Budgeted FundBalance

Tuition

Maint. Reserve

Misc.

SEMI

$1,279,068

$63,563,682

$1,073,105

$100,000

$123,000

$34,036

$1,875,517

Tax Levy 93%

State Aid 3%

Largest Impact on Budget by Program [Total Program Cost $68,443,494]

22,1

02,4

17

12,1

80,0

87

5,54

4,17

5

5,25

6,31

2

3,17

3,06

2

2,38

5,41

2

2,34

3,83

8

1,29

0,13

7

1,28

8,92

4

1,25

9,86

1

1,23

5,48

7

1,11

3,27

1

1,09

6,78

9

1,05

8,28

9

1,02

8,18

0

837,

386

822,

098

813,

716

1,08

5,75

3

727,

088

628,

712

1,17

2,50

1

$52.9 M or 77% $9.4 M or 14% $4.9 M 7% $1.2 2%

13

OPERATING EXPENSE - % OF EVERY DOLLAR SPENT

Classroom Instruction – 66.4%

Co-Curricular Instruction – 2.2%

Undistributed Expenses – 13.2%

Support Svcs – 8.1%

Operational Plant Svcs – 8.9%

Capital Outlay – 1.2%

Classroom, 66.4%

Other, 33.6%

$ SPEND

9,770

9,607

9,479

9,190

8,794

8,622

8,589

8,560

8,533

8,102

8,018

0 5,000 10,000 15,000 20,000 25,000 30,000

SUMMIT CITY

LIVINGSTON TWP

MILLBURN TWP

WAYNE TWP

SOUTH ORANGE-MAPLEWOOD

CRANFORD TWP

RIDGEWOOD VILLAGE

MONTCLAIR TOWN

WESTFIELD TOWN

SCOTCH PLAINS-FANWOOD REG

SCH DIST OF THE CHATHAMS

Total Classroom Expenditure NJ DOE Comparitive Spending Guide 2016

2013-14 2014-15 2015-16

SUMMIT $8,865 68|103 63.4% $9,346 80|103 64.3% $9,770 78|103 64.4%

HEALTH BENEFITS $8.9M

OR13.1% OF BUDGET

1,551,455.83 1,508,340.53

1,735,665.12

0.00200,000.00400,000.00600,000.00800,000.00

1,000,000.001,200,000.001,400,000.001,600,000.001,800,000.002,000,000.00

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Claims Experience over Six Years

Receipts Claims

HEALTH BENEFITS $8.9M

13.1% OF BUDGET

CIGNA Minimum Premium Arrangement vs. Conventional Plan

• Quasi Self Insured “Protected against Losses beyond Premium”• Ability to profit when claims are less than anticipated (good experience)

• Fully Funded Reserve [$1.5M] maintained for IBNR (run out claims)

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

End of Year Excess Available from Budget(Revenues, Expenditures and Positive Health Benefits Experience* FY 12, 13 & 14)

2,710,877* 2,760,245* 2,701,069* 1,986,392 1,916,320

Yr End Capital Reserve Deposit 1,500,000 1,750,000 1,500,000 600,000 500,000

Maintenance/Other Reserve Deposits 0 0 0 150,000 250,000

Yr End Targeted Spending Plan 342,901 292,567 510,382 276,839 313,072

Yr End Excess 2% “Roll to Future Budget” 867,976 717,678 690,687 959,553 853,248

Actual Spend Budget (Audited) 65,480,009 67,319,715 66,424,683 69,383,331 72,550,886

Excess as % of Budgeted Spend 4.1% 4.1% 4.0% 2.9% 2.6%

STRATEGIC FORECASTING - CASH MANAGEMENTEXCESS GENERATED FUNDS “YEAR-END”

STRATEGIC FORECASTING - CASH MANAGEMENTEXCESS GENERATED FUNDS “YEAR-END”

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Excess 2% Capital Rsrv Deposit Maint/Other Deposit EOY Purchasing

MANAGEMENT OF EXCESS FUNDSFY2012 FY2013 FY2014 FY2015 FY2016

Comparative Analysis

EXPIRED

2.00%

1.91%

1.92%

2.44%

2.65%

2.04%

1.59%

1.47%

3.56%

1.98%

0.70%

Inflation, 1.7%

Inflation, 1.7%

Inflation, 1.7%

Inflation, 1.7%

Inflation, 1.7%

Inflation, 1.7%

Inflation, 1.7%

Inflation, 1.7%

Inflation, 1.7%

Inflation, 1.7%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00%

LIVINGSTON

MILLBURN

WESTFIELD

CHATHAMS

SCOTCH PLAINS-FANWOOD

NEW PROVIDENCE

BERKELEY HEIGHTS

MADISON

RIDGEWOOD VILLAGE

SUMMIT

5 Year Avg. % Increase against inflation FY2012 - FY2016

2.00%

SUMMIT

Summit's five year average of .7% remains well below the five year average rate of inflation of 1.7% or one complete percentage below

QuestionsBOSE Budget Hearing –March 28th – 7:00 PM